Multiple Choice
If the exchange rate between the U.S. dollar and the Euro is $1.20 per Euro and the annual rate of inflation is 5 percent in the United States and 10 percent in Europe, what will be U.S. dollar per Euro exchange rate in one year?
A) 1.050
B) 0.8730
C) 1.257
D) 0.7955
Correct Answer:
Verified
Correct Answer:
Verified
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